Monday, 30 March 2015

Cisco inks 10-Year Deal With Australia's Covata

Australian digital security company listed Covata Limited told shareholders on Thursday that it has signed an agreement with Cisco that would license the networking company listed on NASDAQ both its products and technology platform based on a software-as -a-service.

While the value of the contract was not disclosed, Covata said the 10-year agreement comes with a minimum term of four years, while revenues received from customers using Cisco technologies Covata product and platform will be shared between the two companies.

The agreement is a major step in the expansion strategy Covata to build its profile in the United States, after completing a reverse acquisition last year agreement allowing it to be listed on the Australia Stock Exchange (ASX).

Covata, which initially emerged from its subsidiary based in Sydney Cocoon Data Holdings, traded in November last year after lifting an AU $ 15 million excess supply of shares of applications.Founder and CEO Covata Trent Telford, who has moved to the US to help oversee the expansion of the company in North America, said the new agreement with Cisco validates the technology company and highlights its potential.

"For over three decades, Cisco has been a pioneer in the IT space, and we are delighted to be working with them to bring a new security service component to its global customers," Telford told shareholders. "This agreement is a monumental step for the company in terms of validation of the technology, and the ability of the company to provide world class deals.

"We are building a team to focus on supporting Cisco strategic path in coming years, and look forward to working with them on future joint initiatives," Telford said.

Covata told shareholders that it has deployed the Cisco product and initial customer engagement has begun.

In February, the company said in its interim results that the expenses of his backdoor listing on the ASX left him with a loss of AU $ 14.7 million for the six months ending December 2014.Covata reported that their expenses for the six months came to AU $ 15.6 million, nearly triple the AU $ 5.6 million incurred in the same period last year.

It was reported only au $ 0.21 million in revenue for the six months, down count income from the previous year AU $ 0.25 million for the same period.